1HJuly DDR3 contract price shows the upward pricing momentum again since 2HJune contract price remains flat. DDR3 1066Mhz 2GB is up 5% to US$ 24 from US$ 23 while DDR2 667Mhz 2GB is pricing at US$ 21.5 level.

According to our survey, among 30%~70% PC models will be equipped with DDR3 by the 4Q09 and we believe the odds for upward pricing momentum will be claimed in 2HJuly and August. PC-OEMs contend certain inventory level of DDR2 and that resulted in the difficulty for price negotiation. That is, the 1HJuly DDR2 prices remain same as the price in 2HJune. Currently DRAM vendors are looking forward for bundle sales that enable the enhancement of bargain power by promoting DDR2 along with DDR3. Otherwise, we did not see any positive impact on the pricing trend in DDR2.

In spot market of last week, DDR2 1Gb eTT chip price has increased 7.6% to US$ 1.13 from US$ 1.05 while DDR2 1Gb 667Mhz has climbed 5.5% to US$ 1.15 from US$ 1.09 along with slightly 1% price growth for DDR3 chips.

Given the upward pricing trend in spot market, buyers have begun the inventory replenishment since quarter-end effect has been passed. The transaction volume is shrunk while prices remain the same as the one in last week that buyers are more cautious toward the future market. DDR2 chip will retain its main status in spot market in terms of transaction basis. Currently portion of DDR3 shipment is less than 1% among in product mix of module houses and DDR3 chips will turn to the main products in spot market while DDR3 is broadly applied in PC market.